HomeCryptoThe World Economic Forum says that cryptographic and blockchain technologies will continue to be an “integral” part of the modern economy
The World Economic Forum says that cryptographic and blockchain technologies will continue to be an “integral” part of the modern economy
January 2, 2023
The World Economic Forum (WEF) believes that the technology behind cryptocurrencies and digital assets will continue to be an “integral” part of the modern economy.
In a blog post on Monday, the international organization talked about what the future holds for the cryptocurrency industry. The WEF particularly highlighted the widespread applications of cryptography and blockchain technologies, adding that their use in the financial services sector is already substantial.
“Indeed, as evidence of the staying power of digital assets and blockchains at the heart of financial services (and other areas of the global economy), look at what big banks and mature financial services companies do, not what they say “.
The report said JPMorgan has built a reputation for its friendly stance towards the cryptocurrency industry, but the bank is no longer alone in adopting Web3 and cryptocurrencies.
The WEF has likened the adoption of cryptography and blockchain technologies to the embrace of cybersecurity and digital transformation. “The embrace of cryptographic technology is equally inevitable, even if the term sounds like a dirty word,” the organization said.
The organization has recognized that the cryptocurrency industry is not risk-free, similar to any other industry involving money. However, he noted that the transparent nature of cryptocurrencies gives bad guys few places to hide.
As reported, a couple was arrested by federal law enforcement officials in New York City earlier this year after officials gained access to files within a Lichtenstein-controlled online account that contained the private keys of 94,000 BTC (4.1 billion USD) that had been stolen by Bitfinex. The attack took place in 2016.
The WEF also called 2022 “a terrible year for cryptocurrencies”. Overall, more than $2 trillion of value has been evaporated from the cryptocurrency market capitalization, which has plummeted to around $800 billion from its all-time high of around $3 trillion.
The organization noted that recent incidents, especially the collapse of FTX, once the third largest cryptocurrency exchange in the world, have eroded user confidence in the industry and also attracted the attention of global regulators.
“Policy makers who sounded the alarm about the excessive risks of cryptocurrencies, while failing to create reasonable regulations, were justified by not one, but multiple large-scale failures.”
Interestingly, the WEF compared the cryptocurrency market crash of 2022 to the bursting of the dot-com bubble in the early 2000s, arguing that it will deliver crypto technology and blockchain infrastructure to corporations, business models, and d use more durable.